Bumi Resources to hold public expose on KPC acquisition today
Friday, August 1 2003 - 02:09 AM WIB
The move comes in response to the Jakarta Stock Exchanges? letter demanding the firm to hold a public expose by August 8, according to the bourse.
In its letter, the bourse asked the firm to unveil the chronology of its plan to acquire the stake belonging to Kalimantan Coal Limited and Sangata Holding Limited in KPC. Kalimantan Coal is wholly owned by BP International Limited, while Sangatta Holding is wholly owned by Rio Tinto?s Pacific Resources Investment.
In the public expose, Bumi should also explain its plan to raise funds for the acquisition, the progress of the fund raising, and the mechanism of payment to BP International and Pacific Resources.
The firm should also explain about creditors? approval and capability to finance the acquisition and the firm?s readiness to realize the acquisition.
It must also explain whether the acquisition plan has been approved of by the central government and regional administrations. In this case, it must give response to the press statement published by the East Kalimantan provincial council and administration on Jakarta-based daily Media Indonesia on Tuesday. In the press statement, the council and the administration denounced the acquisition.
Bumi should also explain the impact of the acquisition on its financial performance.
The firm was also asked to report the progress of the acquisition to the bourse regularly every Friday, until the process is completed.
BP and Rio Tinto announced two weeks ago that it had clinched a deal with Bumi to sell their stake in KPC. The deal has angered some parties, including top officials in the central government and East Kalimantan as the announcement came while three state-owned firms were in negotiations to buy 51 of KPC shares.
In response to the controversies, the Jakarta Stock Exchange suspended the trading of Bumi?s shares early this week. (*)